Question

You bought a stock one year ago for ​$50.99 per share and sold it today for...

You bought a stock one year ago for ​$50.99 per share and sold it today for ​$58.38 per share. It paid a ​$1.66 per share dividend today.

a. What was your realized​ return?

b. How much of the return came from dividend yield and how much came from capital​ gain?

Homework Answers

Answer #1
Po = Purchase Price
P1 = Sale Price
A) Total Return on Shares = (Dividend + (P1 - P0)) * No of Shares
(1.66 + 58.38 - 50.99) * 1
9.05
Return on Shares in % = Return on Share / P0 * 100
9.05 / 50.99 * 100
17.75%
B) DIVIDEND YIELD = Dividend Income/ P0 * 100
1.66 / 50.99 * 100
3.26%
CAPITAL GAIN YIELD = (P1 - P0)/ P0 * 100
(58.38 - 50.99) / 50.99 * 100
14.49%
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